Answer:
Sanyu Sony
Income Statement
For the month ended December 31
Revenue $7,100
<u>Less: Operating expenses 2,940 </u>
Net Income $4,160
Sanyu Sony
Statement of Retained earnings
For the month ended December 31
December 1 $ -
Add: Net Income 4,160
<u>Less: Dividends 950 </u>
December 31 $3,210
Sanyu Sony
Balance Sheet
As of December 31
Asset
Current Assets
Cash $59,180
Acounts receivable 900
<u>Office supplies 1,150 </u>
Total current assets $61,230
Non-current assets
Equipment 15,530
Total assets $76,760
Liabilities and Owner's Equity
Current liability
Accounts Payable $350
Non-current liability
Note Payable 8,200
Total liabilities $8,550
Owner's Equity
Common Stock $65,000
Retained earnings 3,210
Total equity $68,210
Total liabilities and Equity $76,760
Sanyu Sony
Statement of Cash Flows
For the month ended December 31
Net Income $4,160
Changes in working capital:
Increase in:
Accounts receivable (900)
Office supplies (1,150)
Increase in:
<u> Accounts payable 350 </u>
Net cash provided by operating activities $2,460
Cash flow used in investing activity
Acquisition of equipment (15,530)
Increase in Notes payable 8,200
<u>Payment in dividends (950) </u>
Cash flow used in investing activities (8,280)
Cash flow from financing activity
<u>Collection of subscriptions receivable 65,000 </u>
CASH AT END OF DECEMBER $59,180
Explanation:
Balance sheet is a statement of financial position that consists of 3 sections; Assets, liabilities and equity. It summarizes the financial balances of the company's accounts. All real accounts will be reflected in balance sheet.
Income statement shows the nominal accounts of the company. It shows how well the company performs during the period thru its revenue and expenses summary that is reflected in this statement.
Statement of Retained earnings shows the balances of the retained earnings for the period.
Statement of cash flows has 3 sections; operating, investing and financing activities.
